Thursday, September 20, 2007

Good Bill

Congressman Brad Miller along with various cosponsors has introduced "The Emergency Home Ownership and Mortgage Equity Protection Act of 2007."

Key provisions:

  • Allows bankruptcy judges to modify terms of primary residence mortgages, something already allowed for investment properties and vacation homes.
  • Extends window over which debts must be paid under Ch. 13 Bankruptcy past the current 3-5 years for primary residences, something already allowed for farms.
  • Cancels the ridiculous requirement that those who seek bankruptcy protection must first obtain credit counseling. This is generally a stupid and pointless hurdle, and especially so if one is facing a rather fast foreclosure process.

The first one is the key thing, and will potentially allow bankruptcy judges to redo absurd loan terms and help people stay in their homes.